The best school day ever.

[BluE_MeaniE]

I want that!

I think it's time for an economics joke!

Two economists were at a car show. One sees a shiny new Porsche and says to the other "I want that." The other economist replies "Obviously not."

I heard that one the other day during the best school day ever for me. We played hide and seek in orchestra (during which I skinned my knee on a wall). Don't ask, please.

Q

I don't think I get it.

[QreepyBORIS]

I don't think anyone else cares, even. :P

[alainbryden]

It's a great joke.

Obviously, the economist technically wouldn't want it. It's not cost effective. ie, it's a Veblin Good.

[alainbryden]

At request, I'll clairify.

It's not cost effective, meaning you're paying more for it and not getting anything more useful to you.
Something much cheaper can have the same use and thus, be more cost efficient, ie: transportation.
Also, anything that people buy just for novelty purpose is called a Veblin good. People only buy these because it's more expensive, so it's a social status item. Such people ruin the world of economics, because what they do goes against financial common sense.

But I suppose the flaw in economics is the way it just can't account for some people valuing money less than others.

[frieda]

-.- on my school computers. they give each student like hardly any space. PLUS they disabled the floppy/cd drives.. meaning about the only things we can play are liero (the old version i think) and online games.. plus all email is disabled so i smuggle in work to print off (yes i'm cheap and my printer has no ink) by uploading onto geocities.. eep i'm rambling DAMN YOU lucky person =]

[Rebirth0]

Oh my god your lucky. At my school you can't even download StepMania. The internet blocks ffr, because of Sex....wtf xqsite is fine though. I'm glad this is the last year at my school. Hopefully next year we'd have a chance at downloading SM.

[The_Q]

Unforunately, to measure value in quantity is wrong. It's impossible. The best analogy I've ever seen was that to measure value is like measuring with a rubber ruler. It changes from day to day and person to person. All we have are averages.

The only major flaw in economics is that it only accounts for rational behavior. Humans are not always rational. What do economists say to that? "Dammit! Well, let's work around that. Being right half the time is better than being right none of the time." No, buying the Veblin good could be considered rational. It does gain you social status, right? If you buy the good for that status and influence, isn't it a bit more rational?

That's the job of economists who love their jobs. Finding rational behavior in seemingly irrational behavior.

Q

[alainbryden]

Yes, you can always push for a rational economically-benefitting explanations such as:

By buying the porsche, Joe here impressed his boss and gets a raise. Joe just benefitted from this fine good.


But then you can argue the opposite:

Joe's car gets him a girlfriend, and eventually a wife, but she was only in it for the money. He gave his richness and insecurity away with his fancy car. Now they've divorced and that porsche belongs to her.